US Aftermarket Sales Rate Grows Faster Than Expected
The sales volume in the U.S. car aftermarket approached $297 bln in last year, surpassing the predicted growth rate by almost $1 bln. This is according to the data released by AASA in collaboration with the Auto Care Association.
The document prepared by two organizations
forecasts that consolidated aftermarket sales will increase from $297 bln last
year to $338 bln within 3 years. According to AASA officials, they expected
that the market would grow during last year, but thanks to the rapid growth of
the American economy more aftermarket expenditures were triggered than
anticipated. Experts point out that there are many prerequisites for further
sales growth, such as increased number of vehicles-in-use. At the same time
there are some problems too: for instance, there may be needed significant
changes in the distribution model, since customers’ demands for service and
repair also change significantly.
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But it is expected that the aftermarket will
continue to grow steadily. The growth of ageing cars on the road, the 12-years-and-older
segment now reaches 44% of total passenger cars and with an annual growth of
4%, sets the ground for positive predictions for the aftermarket growth.
Growing mileages, rapid development of online marketing, and strong demand
strengthens positive predictions for the business. Innovative solutions such as
Advanced Driver Assistance Systems, E-mobility, and development of self-driving
technologies will give more incentives for this growth in the future.
Cover of Auto Care Association’s 2020 Auto Care Factbook
The report with the aftermarket estimations and predictions is prepared on behalf of AASA and the Auto Care Association by the information company IHS Markit. The report will be made publicly available at the AASA website, and in the Auto Care Association’s 2020 Auto Care Factbook, currently available at autocare.org.
